Deep Yellow Strengthens Financial Position

DEEP Yellow Limited cash position strengthened due to a successful capital raising of US$4,5 million. The company owns the Omahola Project in the Erongo Region.

“Renewed investor interest in the uranium sector due to the Australian-Indian Civil Nuclear cooperation agreement and restart approval for two nuclear plants in Japan led to a small but steady improvement in the uranium spot price,” Deep Yellow said.

Deep Yellow said further internal studies were conducted on the Omahola Project during the quarter following the encouraging results of the in-house preliminary economic analysis completed in June.

“These studies had the objective of identifying a more optimal rate of future production and enhanced life of mine,” the company said.

The company said the production of a sand concentrate for sale to an existing Namibian producer remains the preferred development strategy for this project in the short term. However. Deep Yellow said this strategy remains conditional on securing an offtaker.

Deep Yellow said the option of incorporating the sand into the Omahola Project in the longer term remains.

Source : The Namibian